Vacation Deferral Request

Richard Lung, Director, Flight Crew Resources

October 7, 1999

World Headquarters
October 7, 1999

Dear Pilot:

Year 2000 will be an unprecedented year for United,
both in terms of opportunity and challenge. Pilots are moving up
at record rates. For example, in the latest rounds of bids, we had
four new captains with less than three years seniority! We could
see this trend continuing in 2000, as transition and new hire training
is projected to increase to 4500-5000 pilots next year compared to 3000-3500
this year.

These promotions are driven by 450 pilot retirements,
continued sharp growth of 20 aircraft in our fleet driving our domestic
expansion, and recovery of our B747-400 Pacific operations. We are
planning new LAX-MEL service starting December, new SFO-SHA service in
the spring, and possibly a third Pacific operation also next year.
Each of these routes results in roughly 20 B747-400 captain and 35-55 first
officer positions, compared to 6 captain and 6 first officer positions
for domestic flying. Our pilot work force is projected to grow by
over 500 pilots as we plan to hire over 1,000 new pilots, with over 10,500
pilots by year end 2000 and a fleet of 615 aircraft.

To meet these needs, we would like to solicit those
pilots who would like to defer some or all of their currently assigned
February, March and April vacation and any unassigned vacation remaining
after the January 60 day assignments are complete. If we still fall
short after this solicitation, we may offer additional rounds of vacation
deferrals.

This deferral will be in accordance with Section
11 -F of the 1994 Pilot Contract and Letter 96-13. We are working
hard at balancing the required block hours to fly with what vacation we
can give.

You can submit a request by completing DIS*31190
in Unimatic. Tab to complete the fields and transmit after the ".EM."
at the end of the page. The page will be automatically sent to WHQCM
for processing. If you cannot access Unimatic, fill in the attached
form and send it to your domicile administration. They will in turn
complete DIS*31190 for you. DO NOT submit under both methods because
this will create confusion should the two not agree. Please be aware
that you can defer more than one split only to the extent that both this
year and next year's vacation can be assigned as legal splits (Letter 96-13).
Therefore, the total number of splits for both years must remain the same.
A deferral cannot create splits. Any questions can be directed to
your domicile.

Again, we will be collecting requests through noon
ORD domicile time on Wednesday, November 17, 1999. At that time,
all ASSIGNED and UNASSIGNED vacation deferral requests will be combined
and awarded in seniority order based on operational needs. If your
request for deferral is accepted, your Pilot Data File will be updated
and your domicile will place a notification in your mailbox.

Thank you for your time and helping us meet a very
aggressive 2000 flying plan.